Good news for liquor lovers in Karnataka: starting July 1, the prices for some premium liquor brands will drop due to new excise duty slabs introduced by the state government. This change is expected to make premium spirits more affordable.
New Pricing Structure
The government has updated the Karnataka Excise (Excise Duties and Fees) Rules, 2024, reducing the number of excise duty slabs from 18 to 16. The revised slabs will apply to brandy, whiskey, gin, rum, and other liquors, but not to beer, wine, toddy, or feni. The exact new prices for each liquor brand will be announced by the distilleries once they update their declared prices.
Updated Excise Duty Slabs
Here’s a look at some of the new excise duty slabs:
– *₹751 to ₹900*: ₹770 per bulk litre
– *₹901 to ₹1,050*: ₹870
– *₹1,051 to ₹1,300*: ₹970
– *₹1,301 to ₹1,800*: ₹1,200
– *₹1,801 to ₹2,500*: ₹1,400
– *₹2,501 to ₹5,000*: ₹1,600
– *₹5,001 to ₹8,000*: ₹2,000
– *₹8,001 to ₹12,500*: ₹2,400
– *₹12,501 to ₹15,000*: ₹2,600
– *₹15,001 to ₹20,000*: ₹2,800
– *₹20,000 and above*: ₹3,000
Previously, the highest duty was ₹5,358 per bulk litre for liquors priced over ₹15,000. The new maximum duty is ₹3,000 for those over ₹20,000. This adjustment aims to align Karnataka’s liquor prices with those in neighboring states and improve competitiveness.
Impact and Reactions
Currently, premium liquor in Karnataka faces high excise duties, contributing only 2% to 3% of the state’s excise revenue, compared to 52% in Telangana. This change is hoped to boost local sales and increase revenue.
The Federation of Karnataka Wine Merchants’ Association is cautious, noting some confusion about how the new slabs will affect prices. Gurpreet Singh, co-founder of World of Brands, believes the price drop could range from 10% to 20%, benefiting consumers and brand owners. However, he notes that prices in neighboring states will still be lower, suggesting that further adjustments may be needed.
